wrong. investing in CASH does not pay out weekly like property. it pays out quarterly at best. how many retirees can live on a small lump sum 4x a year without blowing it in month one? besides that, the taxman will take his half before the retirees even get it. furthermore, cash does not experience capital growth. rates are near the top of the cycle. they will drop again. then hows your plan gonna work?
and what about inflation? $600/wk may seem a lot now but in 20 years?
Sorry son but it is you whom is wrong, I have an online savings account thats pays 6pc p/a and divvies up the first day of every month!
So now you're worried about the taxman, for a start he wont be taking half for most retirees, second whats better, half of 300 or half of 600?
Rates are top? says who ?
Heres a little compound interest calculation for you on your 20 year time frame, lets just save the income for ease.
500k in bank at 6pc p/a, compounded (with monthly interest payments) for 20 years (not allowing for tax) 1.66m
Im not advocating cash for long term (but its a hell of a lot better for a retiree), they need shares too, perhaps some gold and silver for inflation hedge.
500k house = crap income and baby boomer will be dead before he sees a decent return. Not to mention unexpected costs, such as Structural problems, White ants, recession, crash, Illiquid asset, Bad tenants, no tenants, Rate increases, stress, worry = early death for baby boomer.
Average Baby boomers wont be buying houses for their "Income" but if you keep telling yourself they will at least you ll believe it?
If you were retired would you tie up your money in an Investment property? Whats the point, why on earth did you spend your life earning money if you're not going to enjoy it! Defies Logic, but keep buying Guys, The state Goverments need that 20k from each Purchase or they'll raise my taxes!